"In his April 3rd Interest Rate Observer, James Grant reported that the combined Federal Reserve and US government response to this economic crisis, defined as the change in the Federal Reserve's balance sheet plus the US government's fiscal deficit as a percent of GDP, is some 30% of GDP. To put that number into perspective, that's 10 times the postwar recession average of 2.9% and 3.5 times the previous record of 8.3% seen in you guessed it, the Great Depression.

The size of today's government's reflation efforts truly dwarfs anything we have seen in the past and suggests some truly eye-popping price inflation rates in the future. On that score, it's interesting to note that the greatest price surge in the post gold standard / FDIC era, one that saw the CPI rocket to 15%, began during the 1973-74 recession with a combined Federal Reserve and government response of a mere 4% of GDP. At today's 30%, and we are not done yet, one can only imagine the kind of price inflation that awaits us this time around."

I have been pounding on this for months, inflation is coming. Just because this is America doesn't mean we're immune to massive inflation, if not hyperinflation. Get ready, this is going to be really unpleasant.